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The Impact Of Haccp On Costs And Product Exit

  • Hooker, Neal H.
  • Nayga, Rodolfo M., Jr.
  • Siebert, John W.

Detailed information on firm level food safety costs is reported. Survey data for small and very small meat processors are modeled. Economies of scale in implementing Hazard Analysis Critical Control Point (HACCP) systems are investigated. Results indicate that even after controlling for scale, ver small plants incur higher compliance costs. Diseconomies of scope are assessed using the probability and number of products discontinued due to HACCP. Such "partial exit" is positively related to the current range of items produced and the need for facility modification. However, no evidence is found for higher levels of partial exit in very small plants.

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File URL: http://purl.umn.edu/15513
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Article provided by Southern Agricultural Economics Association in its journal Journal of Agricultural and Applied Economics.

Volume (Year): 34 (2002)
Issue (Month): 01 (April)
Pages:

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Handle: RePEc:ags:joaaec:15513
Contact details of provider: Web page: http://www.saea.org/jaae/jaae.htm
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  1. Donald W. Anderson & Brian C. Murray & Jackqueline L. Teague & Richard C. Lindrooth, 1998. "Exit from the Meatpacking Industry: A Microdata Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 96-106.
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